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5% GST on Railway catering services in trains, stations: Finance Ministry

This would bring about uniformity in the rate of GST applicable to supply of food and drinks made available in trains, platforms or stations

Press Trust of India  |  New Delhi 

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The finance ministry on Friday said a 5 per cent will be levied on and supplied by the Indian Railways or IRCTC in trains, platforms or stations.

The Finance Ministry has written to the Board on March 31 about the 5 per cent rate to remove any doubt or uncertainty in the matter.

This would bring about uniformity in the rate of applicable to supply of and made available in trains, platforms or stations.

"It has been clarified ... that the rate on supply of and by the Indian Railways or Indian Railways and Tourism Corporation Ltd or their licensees, whether in or at platforms, will be 5 per cent without input tax credit," the statement said.

The and Tax (GST), which subsumed over a dozen local levies, was rolled out from July 1, 2017.

First Published: Fri, April 06 2018. 19:00 IST
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